Can Goldman Sachs use Bitcoin as collateral?

Goldman Sachs is among a handful of tier-one U.S. banks figuring out how to use bitcoin as collateral for cash loans to institutions, according to three people familiar with the plans. Banks such as Goldman will not touch cryptocurrency spot markets but lean towards synthetic crypto products such as futures.

Is bitcoin a traditional asset?

Bitcoin is not a traditional asset, and its fundamental values are not measured in traditional terms. Bitcoin can be traded directly between two parties or on independent exchanges. More brokerages are facilitating trades for investors in recent years. Bitcoin is a highly volatile, almost completely speculative investment.

What if bitcoin's share of the store of value market rose to 50%?

"Hypothetically, if bitcoin's share of the store of value market were to rise to 50% over the next five years (with no growth in overall demand for stores of value) its price would increase to just over $100,000, for a compound annualized return of 17% to 18%."

Can banks use Bitcoin as collateral?

U.S. banks want to use bitcoin as loan collateral without touching the bitcoin. Hear Alex Thorn share his take on "Bitcoin and Inflation: It’s Complicated” at Consensus 2023.